Harris Earns $1.39 Per Share

Harris Corp had news-filled earnings report. Let’s start with the good news. The company reported earnings of $1.39 per share which was six cents more than expectations.

Harris also narrowed its full-year guidance by five cents at each end. The new range is $5.15 to $5.25 per share. The bad news is that they lowered their 2012 revenue guidance from $6 billion to $5.45 billion. Harris offered initial EPS guidance for 2013 of $5.10 to $5.30 which isn’t very impressive.

Harris said that it will sell its broadcast business in an effort to focus on core businesses that won’t be impacted by lower defense spending. This is a smart move since the broadcast business has been a drag on earnings for Harris.

The divestiture will result in at $407 million after tax charge to the company, which resulted in a reported loss of $255 million in the third quarter.

“The decision to divest Broadcast Communications resulted from a thorough review of our business portfolio, which determined that the business is no longer aligned with the company’s long-term strategy,” said William M. Brown, president and chief executive officer. “The plan to sell these assets supports our disciplined approach to capital allocation, and we intend to use the proceeds to return cash to shareholders and invest in growing our core businesses.”

Posted by on May 1st, 2012 at 8:47 am

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